## Question 876:

A suburban hotel derives its gross income from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 day (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied. Use a statistical software package to answer the following questions.
a. Does the breakfast revenue seem to increase as the number of occupied rooms increases? Draw a scatter diagram to support your conclusion.
b. Determine the coefficient of correlation between the two variables. Interpret the value.
c. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the .10 significance level.
d. What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied?

Income Occupied
1 1452 23
2 1361 47
3 1426 21
4 1470 39
5 1456 37
6 1430 29
7 1354 23
8 1442 44
9 1394 45
10 1459 16
11 1399 30
12 1458 42
13 1537 54
14 1425 27
15 1445 34
16 1439 15
17 1348 19
18 1450 38
19 1431 44
20 1446 47
21 1485 43
22 1405 38
23 1461 51
24 1490 61
25 1426 39

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